Financial Performance - For the six months ended June 30, 2025, the group's total revenue was approximately HKD 76.6 million, a decrease of about 38.6% compared to HKD 124.7 million in the same period last year[8]. - The group recorded a loss attributable to equity holders of approximately HKD 36.9 million, an increase of about 86.4% from a loss of HKD 19.8 million in the previous year[8]. - Revenue from the cold storage and related services business decreased by approximately 33.2%, while revenue from food and beverage trading and sales in mainland China decreased by approximately 61.8%[8]. - The company reported a pre-tax loss of HKD 36,930,000 for the six months ended June 30, 2025, compared to a loss of HKD 19,764,000 for the same period in 2024[31]. - The net loss attributable to equity holders for the period was HKD 36,930,000, resulting in a basic and diluted loss per share of HKD 1.27[32]. - The group reported a net loss of HKD 36,930,000 for the six months ended June 30, 2025, compared to a loss of HKD 19,764,000 for the same period in 2024, indicating a worsening financial performance[41][49]. - Other comprehensive income for the period included a foreign exchange gain of HKD 319,000, contributing to a total comprehensive loss of HKD 36,674,000[32]. Revenue and Operations - The group faced challenges due to a changing consumer behavior, with many local consumers opting for cross-border shopping, impacting demand for storage and logistics services[10]. - The trading business in mainland China continues to operate with a focus on high-margin wholesale channels and selected retail products, while streamlining the distribution network[12]. - The group maintains close ties with well-known supermarket brands and is expanding its convenience store network to stabilize operations and build long-term partnerships[14]. - The number of visitors to Hong Kong is expected to increase by 12% year-on-year to over 24 million in the first half of 2025, benefiting the frozen warehouse and logistics segment[16]. - The GDP growth in mainland China for the first half of 2025 is projected at 5.3%, with the IMF raising the full-year forecast to 4.8%[17]. Cost Management and Efficiency - The group has optimized warehouse operations by relocating from the decommissioned Tsing Yi warehouse to the upgraded Kwai Hoi Street facility, improving overall efficiency and resource allocation[11]. - The company continues to focus on cost control measures without significantly impacting daily operations, targeting non-core positions[30]. - The total employee-related costs for the six months ended June 30, 2025, were approximately HKD 29,425,000, a reduction of 12.5% from HKD 33,696,000 in the previous year[30]. Financing and Capital Structure - Recent significant financing activities, including the subscription of new shares and convertible bonds, have injected new capital, improved liquidity, and allowed for debt repayment[15]. - As of June 30, 2025, the company's bank and cash balance is approximately HKD 21.6 million, down from HKD 59.8 million as of December 31, 2024, primarily due to the repayment of bonds[19]. - The company's debt-to-equity ratio as of June 30, 2025, is approximately -176.3%, improved from -524.6% as of December 31, 2024[19]. - The company has repaid HKD 15 million of its bonds during the six months ended June 30, 2025, with an outstanding bond principal of HKD 70 million[20]. - The group plans to implement cost control measures and new financing arrangements to ensure sufficient working capital for the next twelve months[42]. Share Options and Equity - The total number of shares available for issuance under the 2025 Share Option Scheme is 29,011,040, representing 10% of the issued share capital as of the reporting date[78]. - The company approved a new share option plan on May 29, 2025, which is effective for ten years, replacing the previous plan[74]. - The total number of unexercised stock options across all categories amounts to 23,208,832 as of June 30, 2025[97]. - The company has conditionally agreed to issue convertible bonds worth HKD 15,000,000, convertible into 312,434,909 shares at a conversion price of HKD 0.04801 per share[128]. Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ending June 30, 2025, and found them compliant with applicable accounting standards and regulations[159]. - The company has adopted a risk management and internal control system, which is regularly reviewed and assessed for effectiveness[160]. - The board believes that the ongoing litigation will not have a significant impact on the company's business or financial condition[154]. - As of June 30, 2025, the company has not appointed a chairman, which deviates from the corporate governance code requiring the separation of roles between the chairman and CEO[155].
大同集团(00544) - 2025 - 中期财报